[ by Melanie Gretchen ]

Legg Mason has hired a new commander-in-chief, at the end of a 5-month search to reverse 5 years of client redemptions and calm restive fund affiliates.  Newly minted CEO Joseph Sullivan, 55, has served as interim CEO since 10/1, after predecessor Mark Fetting stepped down under pressure from investor and board member Nelson Peltz to improve the company’s performance.

Mr. Sullivan worked for firm subsidiary Legg Mason Wood Walker for 12 years, before he returned to the global investment management firm as chief administrative officer and head of global distribution.  Since then, he has worked Stifel Nicolaus & Co. as head of fixed-income capital markets from 2005 to 2008, after it bought Legg Mason's capital markets business.

Going forward, Mr. Sullivan is entrusted with helping the Baltimore-based firm recover from its financial woes.  This month, it reported a loss of $453.9 million, or $3.45 a share, for the 3 months ending 12/31, the biggest quarterly shortfall since it posted a $1.5 billion loss at the end of 2008.  Since the firm's stock hit a high of $136.40 in February 2006, it's fallen 80%.

For further details, go to [Bloomberg, 2/12/13].